Assessing the Impact of Financial Markets on Gharz Al-hassane Market in Iran

Investigating benevolent and godly economic behaviors and the factors influencing these types of God's sake behaviors is one of the needs of economic policy making in each society in order to develop them. In this paper, we attempt to assess the impacts of Infāq (giving or disbursing in charity to please God without asking for any favor or hoping for a return) and financial markets (as substitute or complementary), income, age, institutions and religious capital (as supporting factors) and real estate market (as prohibitive factors for benevolent God's sake behaviors) on Iran's Gharz Al-hassane market. To do that, we apply an econometric panel data technique using provincial data during 2004 to 2012. The main result of this paper implies that financial markets play a facilitating role for economic activities in various economic sectors, as well as, they have the same impact on Gharz Al-hassane market and help to the expedition of its development. The results also show that on one hand Infagh couldn’t be considered as a substitute for Gharz Al-hassane or loan. On the other hand, age, institutions and religious capital have positive impacts on the development of Gharz Al-hassane and real estate market inflation has negative impact as well.